Required information (The following information applies to the questions displayed below.) Green Brands, Inc. (GB) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $48,000 78,000 24,000 31,000 8,200 2,400 Year 1 $52,000 72,000 32,000 28,000 7,800 3,600 The Year 2 income statement is shown next: Income Statement Sales 720,000 Cost of goods sold (398,000). Gross margin 322,000 Service revenue 6,000 Insurance expense (36,000) Salaries expense (195,000) Depreciation expense (12,000) Operating income 85,000 Gain on sale of equipment 4,500 Net income $ 89,500 b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2. (Amounts to be d View site Information se indicated with a minus sign.) GREEN BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Net income $ 89,500 Add: Decrease in accounts receivable 4,000 Deduct: Add: noncash expenses Net cash flow from operating activities $ 93,500